IRR is:A) guaranteed to give the right answer.B) not as good as the Payback method because it's tedious and involved to calculate.C) conceptually and mathematically very closely tied to NPV.D) not involved in an NPV Profile.

Question

Morgan McCord · Accepted Answer

Final Answer : C, Explanation :  IRR and NPV are closely related concepts, as IRR is the discount rate where the NPV of an investment is zero. Therefore, IRR is a useful tool for evaluating investment opportunities along with NPV. However, it is not guaranteed to give the right answer in all circumstances, and it can be difficult and time-consuming to calculate. Additionally, IRR may be included in an NPV profile, which shows how the NPV of an investment changes at different discount rates.

IRR is:

A) guaranteed to give the right answer.
B) not as good as the Payback method because it's tedious and involved to calculate.
C) conceptually and mathematically very closely tied to NPV.
D) not involved in an "NPV Profile."

Definitions

Learning Objectives

Learning Objectives

Related questions

IRR is:A) guaranteed to give the right answer.B) not as good as the Payback method because it's tedious and involved to calculate.C) conceptually and mathematically very closely tied to NPV.D) not involved in an "NPV Profile."

Definitions

Learning Objectives

Learning Objectives

Related questions

IRR is:

A) guaranteed to give the right answer.
B) not as good as the Payback method because it's tedious and involved to calculate.
C) conceptually and mathematically very closely tied to NPV.
D) not involved in an "NPV Profile."